D & O ups Dominant Opto stake in RM123m deal
Sulhi Azman / theedgemarkets.com
August 25, 2017 11:11 am MYT
KUALA LUMPUR (Aug 25): D & O Green Technologies Bhd is acquiring an additional 12.45% stake in Dominant Opto Technologies Sdn Bhd from Thames Electronics Sdn Bhd and Cambrew Asia Ltd for RM122.62 million to capitalise on Dominant's favourable prospects.
According to D & O's statement to Bursa Malaysia yesterday, D & O's stake in Dominant will increase from 61.84% to 74.3%, after the purchase of 13.7 million Dominant shares at RM8.95 each. Dominant manufactures opto semiconductor components like light-emitting diode.
"The proposed acquisition will enable D & O to further increase its equity interest in Dominant, as the board believes that the favourable prospects of the Dominant Group is expected to contribute positively to the future earnings of D & O and its subsidiaries," D & O said. The buyer said it would finance the purchase with of new D & O irredeemable convertible preference shares.
D & O said it had appointed Maybank Investment Bank Bhd as principal adviser for the corporate exercise, while Mercury Securities Sdn Bhd is the independent adviser.
D & O's share trade has been suspended since yesterday, in conjunction with the announcement. Trading resumes from 2:30pm today.
Prior to the suspension, the stock was traded at 60.5 sen, for a market value of RM604.1 million.